Golden Services is a service provider company it's activity maily in hospitality services and it is a listed company that was established in the year 2000. The followings are the financial statements related to the year 2019 prepared with a comparative figure from the year 2018.

a. Cash dividends of $23,000 were declared and paid in 2019 while in 2018 they distributed $25,000 b. Weighted-average number of ordinary shares outstanding during 2019 was 30,000 shares and 10,000 shares in 2018 c. Market value of ordinary shares on December 31, 2019, was $21 per share while in 2018 it was $20.5 d.Account Receivable for the year 2017 was 20,000 e.Inventory in 2017 was $75,000 f.Total Assets in 2017 $550,000 Instructions: 1. Apply the trend analysis (horizontal) and common size analysis (vertical) on the financial statements and analyze your answer. 5% 2. Using the financial statements and additional information, compute the following ratios for Golden Services Company for 2018 and 2019. Show all computations. 6.5% 3. You are requested to develop a good understanding of the performance of the firm by interpreting the results of the ratios 8.5% Ratios: Current ratio Debt to total asset ratio Inventory turnover Acid-test ratio Accounts receivable turnover Average collection period Times interest earned Profit margin Days in inventory Payout ratio Return on assets Asset Turnover Payout ratio

Golden Services Company Comparative Statements of Financial Position December 31 2019 2018 $ 260,000 50,000 50,000 15,000 25,000 $ 400.000 $ 300,000 70,000 30,000 60,000 40,000 $ 500.000 Assets Property, plant and equipment (net) Inventory Accounts receivable (net) Short-term investments Cash Total assets Equity and liabilities Share capital - ordinary Retained earnings Bonds payable Accounts payable Short-term notes payable Total equity and liabilities $ 150,000 110,000 80,000 20,000 40,000 $ 400.000 $ 150,000 70,000 160,000 30,000 90,000 $.500.000 Net sales Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net Income Golden Services Company Comparative Income Statement December 31 2019 2018 $ 400,000 $ 350,000 240,000 210,000 160,000 140,000 42,000 40,000 118,000 100,000 18,000 16,000 100,000 84,000 30,000 25,500 $ 70.000 $59.500 Additional information: a. Cash dividends of $23,000 were declared and paid in 2019 while in 2018 they distributed $25,000 b. Weighted average number of ordinary shares outstanding during 2019 was 30,000 shares and 10,000 shares in 2018 c. Market value of ordinary shares on December 31, 2019, was $21 per share while in 2018 it was $20.5 d.Account Receivable for the year 2017 was 20,000 e.Inventory in 2017 was $75,000 f.Total Assets in 2017 $550,000